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A major company has announced a 4:1 bonus share issuance, meaning shareholders will receive four bonus shares for every one share they own. This move has attracted significant investor interest as the record date approaches.

Key Details of the Bonus Share Issue

  • Bonus Ratio: 4:1 (Four bonus shares for every existing share).
  • Eligibility: Investors holding shares before the record date will be eligible.
  • Purpose: The bonus issue aims to reward existing shareholders and improve stock liquidity.
  • Last Chance to Invest: Investors still have an opportunity to buy shares before the ex-date to qualify for the bonus.

Impact on Stock Performance

  • Increased Trading Activity: The announcement has led to higher trading volumes, as investors rush to take advantage.
  • Stock Price Adjustment: After the bonus shares are issued, the stock price will be adjusted accordingly.
  • Long-Term Growth Potential: Companies issuing bonus shares often signal strong financial health and future growth prospects.